South Shore Bank President and CEO James M. Dunphy (left) and Braintree Co-operative Bank’s President and CEO Paul M. Pecci (right). The two banks are planning to merge operations.

The reach of South Shore Bank will soon extend a little further.

The company, along with Braintree Co-operative Bank, announced on Tuesday that the two entities plan to merge operations and unite under the South Shore Bank brand.

“We really think the Braintree market is an important part of our footprint,” South Shore Bank President and CEO James M. Dunphy, who will become the merged bank’s new CEO, told Banker & Tradesman. “In combining forces, we get a lot of talented individuals involved in the community including an active board of directors.”

“South Shore being so much bigger than we are has developed many of the products we have found it very difficult to roll out as smaller bank,” added Braintree Co-operative Bank’s President and CEO Paul M. Pecci, who will become president of the expanded company. “It has been tough to stay on top of technology and develop products that our customers are wanting and deserve.”

With Braintree’s nearly $260 million in assets and South Shore’s $1.07 billion in assets, the expanded bank will have slightly more than $1.3 billion in total assets once the merger is complete, according to FDIC data.

Under the agreement, the two current Braintree Co-operative locations will remain open and convert to South Shore Banks sometime in 2018.

According to Pecci, the combined bank will not renew the lease at South Shore Bank’s current Braintree location, consolidating that business into the two current Braintree Co-operative locations.

Braintree Co-operative closed its Quincy location in April, although Pecci said the closure was unrelated to the planned merger. However, the merger will provide Braintree Co-operative’s former Quincy customers a place to turn to, as South Shore Bank has four Quincy branches.

Dunphy said he and Pecci do not anticipate any layoffs, and expect net staffing levels to increase once the merger is complete, which is expected to occur sometime in the fourth quarter of this year. Members of both banks’ management teams will retain senior roles in the new entity.

Pecci said he and Dunphy have gotten to know each other quite well over the years through the unique community banking landscape in the South Shore.

The two have shared some vendor expenses and had gone in together on some minor projects and participation loans.

“The more we talked, the more it seemed like such a great opportunity for us to share more than a few services,” said Pecci.

Specifically, both Pecci and Dunphy think each other’s loan portfolios complement one another.

Braintree Co-operative’s loan portfolio consists of 35 percent commercial loans and 65 percent residential, Pecci said; South Shore Bank, a commercial lending leader, has a suite of commercial loan and checking products that Braintree Co-operative has always had on its wish list, he said.

South Shore Bank’s portfolio is 60 percent commercial loans, Dunphy said; Braintree Co-operative’s strong presence in Braintree will help deliver those commercial products to the expanded territory. Braintree Co-operative’s experience originating residential loans can improve that area of the loan portfolio, he said.

Dunphy and Pecci both called the merger a win for community banking, saying it will allow each bank to continue offering the same services in the South Shore, even with mounting pressure from bigger players in the market.